The two efforts by the Modi Government did not give expected results that are apparently known by the data available now.

Demonetisation was exercised in a manner that hurted the very common people severely. More than 100 people died. It is said that even 12 bank employees died during this exercise.  Even my sister's son's marriage was postponed by 3 months.

The main objective of Mr.Modi was to eradicate black money.  When Rs.500 and Rs.1000 notes were demonetised, the total value of Rs.500 & Rs.1000 available among the people was 5.44 lakhs.   The Attorne6y general said in the Supreme Court that about Rs.4-5 lakh crores value of Rs.500 and Rs.1000 notes will not come back to the banks that will be the savings to the government.

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But, surprisingly, The recent annual report by the Reserve Bank of India says that about 99% of the Rs.500 and Rs.1000 notes have come back to the banks.  Thus only 1%, ie, Rs.16,000 value of the Rs.500 and Rs.1000 notes have not come to the banks.

In addition to this, more than Rs.8000 crores have been spent by the Reserve Bank for printing new notes.  And,  about 35% of the employees lost their jobs and 50% of their income came down in the small scale Industry sector.

Therefore it is clear that the demonetisation exercise is a clear failure.  However the government is telling that it has brought all the money to the banks or in accounts.

If it is the real objective of the government, it could have done other ways of bringing all the money into accounts.

Some of them are:

(i) Now a days, most of the shops including medical shops do not offer receipts to the customers. If the government ensures this, 50% of the black money will come to the accounts. Instead of doing this the government is torturing the common public.

(ii) The government should first make all the payments above Rs.2000 more than once a day must be paid only through bank in any mode including Wallets in urban areas.  In rural belts, it should be implemented in phases after giving some practice period for the people.  In the case of rural illiterate families, if their payments for work are given through banks, their earnings will also come to the accounts.

(iii) Instead of demonetisation, the government could have educated the illiterates about how to operate bank accounts and why money should be paid through banks.

(iv) Instead of following income tax on profits, the tax should be imposed on the total turnover. This will reduce the bogus accounting since issuing receipts and bills also will be made compulsory and will be subject to serious scrutiny.

(v) Bribing is the great loss for the government and great gain to the individuals that also encourage black money.  When the payments through banks are made compulsory, the bribing will greatly come down.

(vi) When more than 8 crore families have no electricity in the country, the government should not rush with the cashless economy. The rural belts should be given time to change to cashless mode of transactions.  The past illiterate generation will go in about 20-40 years from existence.  When India becomes 100% literate, cashless transactions can be made fully successful.

Instead of trying these practices stage by stage, the Indian Government rushed with a severe shock treatment of demonetisation.  This shock treatment has now made the people realize the serious negative effects of demonetisation only of late.

In a complex country like India, reforms should be done only stage by stage in phases.  First, all the people should be made to demand and issue bills / receipts and not to give and accept any bribe.  Contracts, approvals, etc, must be done only through online mode and 100% of the payment should be made only through banks.

First cleanse the country from corruption and one fourth of illiteracy.  Then think of other reforms.

This is my sincere suggestion to the government.